FOR INDIAN TRADERS -- ABB LIMITED

In this stock, we can come up with two strong wave counts. The pink one represents the actual wave count and the blue one the alternative count. I had to use various fibonacci levels to come up with these counts. The wave five of actual wave count is an ending diagonal in my opinion (3-3-3-3-3 wave structure) and hence indicates that in the longer term, prices may go down. In the short term, both the counts indicate a bullish scenario till 1395 (or) 1439 levels. This gives us a priceless opportunity to switch to a shorter time frame(15 mins preferably) and go long at breakouts or retracements. If it does move as expected, I will shortly post my next view on the stock when the price levels are reached.

If I may suggest, to take care if you are expecting significant bullish move. Though I don't know anything about the company, it has only managed to retrace 23.6% of previous abc decline. In doing that it may well have retrace normal abc move with wave c topping out now if it is 5 wave impulsive as one of your alternative seem to suggest and I agree with. Hence it could be in very early stage of reverting to the downside. Either to make new lower low or form possible triangle or some other complex pattern.

Hi DanV, thanks for your comment/view. I certainly maintain a bearish view in the long run as my actual count indicates. The minor upmove we may see might just be the one of a B wave and the next wave C may take down the prices. Let us wait and watch what ABB does. If price closes above the 0.236 level on your weekly chart, I guess we'll have to change to the alternate count.